1. Field of the Invention
The present invention relates to pricing, and, more particularly, to a method and apparatus for analyzing utility pricing.
2. Description of the Related Art
As the cost of information technology (IT) infrastructure increases, customers increasingly risk over- and under-investing in technology capital. System vendors and service providers are now making available utility-based pricing services, in which customers need only pay for the computing services used. Flexible methods for modeling these types of contracts, including their expected returns and variance, are needed. In particular, a method and apparatus for the economic analysis of utility pricing would prove very helpful in performing such analysis. More specifically, what is needed is an analytic method for predicting the revenue, along with risk and uncertainty, from utility based pricing of an entity's infrastructure (e.g., corporate information technology infrastructure.)